Westpac require interest payments to come from a Westpac account. What the?

[bojangles]

Strange

I've just done my first loan deal with Westpac.
All the docs are signed and we are good to go for settlement.
BUT, at the last minute, they tell me that the CBA account I provided for the interest payments to come from isn't acceptable and I need to provide a Westpac account. Which means I now have to open an account with them for that one loan payment.
I wouldn't have had an issue if they told me that when I went to the branch to sign and lodge the docs. They accepted the CBA account I gave them and never mentioned having to open a Westpac account.
It makes it easy for me having all my rents paid into one CBA account and all loan payments coming out of that same account.
Is this normal procedure for Westpac?

Thanks

I've probably got exactly the same set up as you Rob. LOC with Comm bank/Colonial with transactional account (streamline) where WBA and comm bank take there money out. Got 2 IP's with the same set up, no probs..

 

[Token Funder]

There's been a trend developing for some time that around certain packages/discounts being conditional on establishing and linking a further account/s. The cynic in me might suggest it's a transparent attempt to get the accounts per customer KPI up a tad but of course i wouldn't.

 

[Y33]

I can understand having money direct debited from one bank to another but aren't you missing out on having some sort of offset against the interest charged from the bank if your account is not with them?

 

[Rob Williams]

I can understand having money direct debited from one bank to another but aren't you missing out on having some sort of offset against the interest charged from the bank if your account is not with them?

My offset accounts are attached to other loans with other banks, so I don't need an offset for every loan.

 

[Y33]

My offset accounts are attached to other loans with other banks, so I don't need an offset for every loan.

Okay, thanks.

 

[synthman]

Hi Rob,
We have repayments for a Citibank homeloan deducted directly from a St George saving account. I would also not be very happy had Citibank asked us to open another account with them for the purpose of making loan repayments.

 

[tobe]

ANZ is the only bank I know that insist on a direct debit from their own savings account. All the other majors will try it on, but it isnt mandatory. I havent heard Westpac have changed thier policy, perhaps you just got an over ethusiastic teller/call centre who needed to make their target for the month?

 

[Rob Williams]

ANZ is the only bank I know that insist on a direct debit from their own savings account. All the other majors will try it on, but it isnt mandatory. I havent heard Westpac have changed thier policy, perhaps you just got an over ethusiastic teller/call centre who needed to make their target for the month?

It's not a policy thing, it's a product issue. This product is the only one with Westpac that has this restriction. In order to keep the process moving, I've opened the account.
Seems the real issue was a breakdown in communication. The people in the branch hadn't been advised of this restriction on this particular product.
All good, now.

 

[quoll]

Our CBA loans are paid out of a Westpac account, but they can't take the yearly package fee out of that account.

It does almost seem like it's the staff you deal with that dictate what you can do, not the institution.

Cheers
Graeme

 

[Nth Brisbanite]

It's not a policy thing, it's a product issue.

What's the product?

 

[Spectre]

Apparently, my loan product is a Flexi First Option. It's the only resi product in their product range which has this policy.

Flexi first loan.

 

[Mamaof3]

you're brave Rob! heading out in 40+ degrees to deal with bank staff!
Glad its all worked out for you

 

[Rob Williams]

Flexi first loan.

Yeah, that's the one.

 

[Rob Williams]

you're brave Rob! heading out in 40+ degrees to deal with bank staff!
Glad its all worked out for you

That's what puts us in a different leaugue to the folks playing Keno at the front bar. We do whatever it takes to get the job done. Nothing's too hard for us property investors!
I know you guys didn't get to where you are now by being soft.

 

[Mamaof3]

Absolutely
You wouldn't believe some of the things we've done to get the job done